Higher demand, weaker dollar boosts canola

Winnipeg – Canola contracts on the ICE Futures Canada platform finished higher on Thursday, due to strong demand and weakness in the Canadian dollar.

The Canadian dollar was roughly a third of a cent lower, relative to its American counterpart, which made canola more attractive to international buyers.

Advances in Malaysian palm oil and European rapeseed futures underpinned the futures.

Ongoing concerns over excess dryness in Western Canada also buoyed the market.

However, losses in U.S. soybeans dragged on values.

The July contract ran into technical resistance at the C$540 per tonne mark.

Around 21,632 canola contracts were traded on Thursday, which compares with Wednesday when around 13,252 contracts changed hands. Spreading accounted for 7,174 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures corrected lower on Thursday, after four straight sessions of gains.

Traders were covering shorts while technical selling was a feature of the day.

A truckers’ strike continues in Brazil and some grain ports in Argentina suffered slowdowns today, also due to striking workers.

Corn futures fell on Thursday as traders took profits.

China sold nearly three million tonnes of corn from its state reserve, which weighed on values.

Fund buying helped limit the losses though and the dominant July contract received some technical support at the US$4.00 per bushel level.

Chicago wheat finished roughly one cent weaker in technical trading.

India announced it was raising its import duty on wheat from 20 per cent to 30 per cent, which was bad news for U.S. exporters.

The U.S. winter wheat harvest is expected to begin soon in southern Texas.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.13 at US$70.71 per barrel.

In the afternoon, the Canadian dollar was trading around US77.54 cents, down from 77.93 cents the previous trading day. The U.S. dollar was C$1.2897.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 539.00s +3.80 +0.71%

Canola Nov 18 526.00s +3.30 +0.63%

Canola Jan 19 529.60s +2.70 +0.51%

Canola Mar 19 531.10s +2.20 +0.42%

Canola May 19 531.80s +2.00 +0.38%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

 

Chicago

Soybeans Jul 18 1035-6s -3-4 -0.34%

Soybeans Aug 18 1039-6s -3-4 -0.34%

Soybeans Sep 18 1042-6s -2-2 -0.22%

Soybeans Nov 18 1047-4s -1-2 -0.12%

Soybeans Jan 19 1050-6s -1-2 -0.12%

 

Soybean Meal Jul 18 377.3s -3.4 -0.89%

Soybean Meal Aug 18 377.6s -2.9 -0.76%

Soybean Meal Sep 18 377.3s -2.6 -0.68%

 

Soybean Oil Jul 18 31.71s +0.01 +0.03%

Soybean Oil Aug 18 31.82s unch unch

Soybean Oil Sep 18 31.98s +0.01 +0.03%

 

Corn Jul 18 404-2s -4-2 -1.04%

Corn Sep 18 413-0s -4-2 -1.02%

Corn Dec 18 422-4s -4-0 -0.94%

Corn Mar 19 430-6s -3-4 -0.81%

Corn May 19 435-2s -3-2 -0.74%

 

Oats Jul 18 244-0s -8-0 -3.17%

Oats Sep 18 248-0s -6-4 -2.55%

Oats Dec 18 254-0s -6-2 -2.40%

Oats Mar 19 258-2s -6-2 -2.36%

Oats May 19 261-4s -6-0 -2.24%

 

Wheat Jul 18 530-2s -0-6 -0.14%

Wheat Sep 18 547-0s -0-6 -0.14%

Wheat Dec 18 566-4s -1-6 -0.31%

Wheat Mar 19 583-2s -2-2 -0.38%

Wheat May 19 591-6s -3-0 -0.50%

 

Minneapolis

Spring Wheat Jul 18 634-6s -7-2 -1.13%

Spring Wheat Sep 18 639-6s -7-0 -1.08%

Spring Wheat Dec 18 646-0s -7-2 -1.11%

Spring Wheat Mar 19 654-4s -6-0 -0.91%

Spring Wheat May 19 660-2s -5-2 -0.79%

 

Kansas City

Hard Red Wheat Jul 18 549-0s -2-6 -0.50%

Hard Red Wheat Sep 18 567-4s -2-6 -0.48%

Hard Red Wheat Dec 18 591-6s -3-4 -0.59%

Hard Red Wheat Mar 19 607-6s -4-6 -0.78%

Hard Red Wheat May 19 614-4s -5-6 -0.93%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 104.400s -1.050 -1.00%

Live Cattle Aug 18 101.775s -1.025 -1.00%

Live Cattle Oct 18 105.250s -0.500 -0.47%

 

Feeder Cattle May 18 136.400s +1.500 +1.11%

Feeder Cattle Aug 18 143.300s -0.050 -0.03%

Feeder Cattle Sep 18 143.100s -0.200 -0.14%

 

Lean Hogs Jun 18 74.825s +0.225 +0.30%

Lean Hogs Jul 18 76.775s +0.550 +0.72%

Lean Hogs Aug 18 75.350s +0.325 +0.43%

 

Markets at a glance

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